CHAPTER 27C

* ROYALTY RATES AND LICENSE FEES FOR PHARMACEUTICALS AND BIOTECHNOLOGY (NEW)

  27C.1 THE PARTIES—LICENSING BETWEEN CORPORATIONS DOMINATES

  27C.2 ROYALTY RATES

  27C.3 LICENSE FEES

  27C.4 KEY TECHNOLOGIES

  27C.5 DEVELOPMENTAL STAGES OF TECHNOLOGY

  27C.6 CONCLUSION

The focus of this new chapter is to update Chapter 27A about the compensation terms in pharmaceutical and biotechnology license agreements. Specially discussed are royalty rates and up-front license fees.

Patented technology is the coveted crown jewel of the pharmaceutical and biotechnology industry. Pharmaceutical companies are aggressively pursuing new technologies and products regardless of their source. The amounts being paid for acquisition and licensing of new technologies are rising as pharmaceutical companies, with empty research pipelines, frantically compete for new technologies.

Information in this chapter is from the eighth edition of Royalty Rates for Pharmaceuticals&Biotechnology. The transaction information presented in this chapter is derived from the new edition, having been collected from well-established sources believed to be reliable from September 1990 through August 2012.

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EXHIBIT 27C.1 CHARACTER OF LICENSORS

27C.1 THE PARTIES—LICENSING BETWEEN CORPORATIONS DOMINATES

The licensees to almost every deal in the database are corporations with plans to continue development of the licensed ...

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